Net Effective Rent Calculator
Spread free rent or other concessions across the lease term to find net effective monthly rent. Informational landlord math, not legal or financial advice.
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How to calculate net effective rent
- Enter the advertised monthly rent before concessions.
- Enter the lease length in months.
- Enter the total dollar value of concessions over that term.
- Read NER = (rent × months - concessions) / months.
- Fees and deposits stay separate. Informational only.
Net effective rent
Concession-adjusted monthly rent
| Formula | NER = (rent × months - concessions) / months |
|---|---|
| Gross total | Rent × months |
| Concession | Cannot exceed gross total |
| Term cap | At most 60 months on this form |
| Excluded | Deposits, broker fees, utilities |
| Advice | Informational only. Not legal advice. |
What net effective rent means
Landlords often advertise a headline rent plus one or more free months. Net effective rent averages the cash actually owed across every month of the lease so different concession packages can be compared.
NER formula
NER = (monthly rent × lease months - total concessions) / lease months. Example: $3,000 for 12 months with $3,000 free rent is ($36,000 - $3,000) / 12 = $2,750.
Related rent tools
Partial-month move-in: prorated rent. Household spending: budget. Own versus rent a home: rent vs buy.
Use cases
Comparing two listings with different free-month offers. Checking marketing flyers. Teaching why a lower NER still may have a high face rent later.
Worked example
Gross rent $3,000, 12-month lease, $3,000 in concessions (one free month). NER is $2,750. After the concession period, the lease may still charge $3,000.
Limits
No escalation clauses, no tax, no broker splits. Informational only. See the disclaimer.